U.S. to Cease Penny Production in 2026; Cash Transactions Round to Nearest Nickel

• The U.S. will stop producing pennies in 2026 due to high costs and declining usage.
• Cash transactions will likely round to the nearest five cents, similar to Canada.
• Digital payments remain unaffected, and pricing like $0.99 may continue.
• Businesses should update POS systems, train staff, and add signage for cash transactions.
• Many costs for businesses may be tax-deductible.
• The change reflects the rise of digital payments with minimal disruption expected.
• The penny’s value has decreased due to inflation and digital payment growth.
• Other countries have already phased out 1-cent coins.
• Businesses should consult tax professionals to maximize deductions.
• Most consumers are expected to adjust quickly to the change.

Source: fiscal-requirements.com

Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.

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